11-14-01 1. INDENTURE OF TRUST - Laserfiche WebLink

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ARTICLE II Form,Execution and Registration of Bonds Section 2.01 Form,Maturities.,Interest Rates and other Terms of the Bonds. (a) General. The Bonds of each Series to be issued and secured under this Indenture from time to time shall each be designated a"City of Orono, Minnesota Senior Housing Revenue Bonds(Orono Woods Apartment Project),Series 2001_".The Series 2001 Bonds and Certificates of Trustee and Assignment shall be substantially in the form set forth in Appendix A-1,Appendix A-2 and Appendix A-3,and the form of any Additional Bonds shall be set forth in any Supplemental Indenture for the Additional Bonds. The Bonds shall be issued in fully registered form and all Bonds of a Series within a single maturity shall be in an Authorized Denomination,initially numbered from R-1 upwards in order of maturity(with any designation deemed appropriate to evidence a particular Series),and the Bonds originally issued,and not in exchange for Predecessor Bonds,shall be dated as of the Dated Date. Bonds issued in exchange for Predecessor Bonds shall be dated the date to which interest has been paid on the Bonds being surrendered for exchange, or the Dated Date if issued prior to the first Interest Payment Date. No Bond shall represent principal payable or maturing in different years. (b) Nature of City Payment Obligations. No Bond shall be a general or moral obligation of the City,and the taxing power of the City shall not be pledged to the payment of the Bonds or the interest thereon. All Bonds shall be special limited revenue obligations of the City. Principal of, premium,if any,and interest on all Bonds shall be payable solely out of the revenues derived from the Loan Agreement or other amounts derived from the Trust Estate, including amounts received under the Mortgage,the Subordinate Mortgage,and Net Proceeds. Neither the Bonds nor any of the agreements or obligations of the City relating thereto shall be construed to constitute an indebtedness of the State, the County of Hennepin (the "County") or the City within the meaning of any constitutional,home rule charter or statutory provisions whatsoever,nor constitute or give rise to a pecuniary liability or be a charge against the general credit or taxing powers of the State, the County or the City. (c) Accrual and Payment of Interest. The Series 2001 Bonds shall bear interest from the most recent date to which interest has been paid or provided for(or if prior to the first date on which interest is payable,from the Date of Issuance),payable semiannually on each Interest Payment Date occurring on and after May 1,2002. Interest for the Series 2001 Bonds shall be calculated on the basis of a 360-day year,consisting of twelve 30-day months,and,to the extent unpaid,accrued interest shall compound on each Interest Payment Date thereafter. Additional Bonds shall bear interest from their Date of Issuance that is payable on such Interest Payment Dates and calculated in such manner as shall be established by any Supplemental Indenture authorizing the issuance of the Additional Bonds. (d) Methods of Payment. Except as may be otherwise provided with respect to Additional Bonds in the Supplemental Indenture for such Bonds,the principal and redemption price of all Bonds shall be payable to the registered owner upon presentation at the office of the Trustee in such coin or currency of the United States of America as may be, on the respective dates of payment thereof,legal tender for the payment of public and private debts,and interest on all Bonds - 19 -